FINAL –
APPROVED 11/23/04
MINUTES OF THE
BOARD OF COMMISSIONERS' SPECIAL MEETING
___________________________
___________________________
The Board of Commissioners met in the Boardroom of the Administrative Offices,
|
Present: |
Commissioners Ronald C. Callen, |
|
Absent: |
Commissioners Gary L. Calkins and Tim
Haggart. |
The Secretary declared a quorum present.
Chairperson Smith called the meeting to order at 5:30 p.m.
Chairperson Smith requested a moment of silence in memory of Curtis V. Gates who passed away on October 12, 2004. She later commented that Mr. Gates began his employment at BWL in 1975 when he was hired as a laborer in what was then called the General Maintenance Department. In 1978 he was promoted to Apprentice Construction Mechanic and attained journey worker status in 1980. In 1987 he was promoted to Construction Mechanic Leader in Construction Services, the position he held for the rest of his BWL career. He was active in the affairs of IBEW Local 352 for more than twenty years, first as a union steward and later as the union’s Safety Director. He was elected Business Manager for IBEW Local 352 in 2000 and held that position until his death. Chairperson Smith stated that all BWL employees and Commissioners join in extending heartfelt sympathy to Mr. Gates’ wife, Carol, and their two children.
THE CHAIR ANNOUNCED THAT MEMBERS OF THE PUBLIC ARE WELCOME TO SPEAK TO THE BOARD ON ANY AGENDA SUBJECT OR ON ANY OTHER SUBJECT NOW, OR AT THE END OF THE MEETING.
No persons spoke.
RATIFICATION OF BARGAINING UNIT CONTRACT
WHEREAS, the Board of Commissioners has had an opportunity to review a summary of the settlement issues and the contract agreed to by the Lansing Board of Water and Light (“BWL”) and the International Brotherhood of Electrical Workers Local Union 352 (“IBEW”) negotiating teams; and
WHEREAS, the BWL and the IBEW recognized and considered the critical and ongoing needs of its customers, employees and ratepayers; and
WHEREAS, the IBEW membership has had an opportunity to review the settlement issues and has ratified the proposed contract.
RESOLVED, That the attached contract (Attachment #1) between the BWL and the IBEW is hereby approved, subject to approval by the IBEW’s International representative. The Agreement will expire on October 31, 2006.
RESOLVED FURTHER, That the Chair and the Corporate Secretary are hereby authorized to sign the Agreement incorporating the settlement changes.
Motion by Commissioner Duncan, seconded by Commissioner Wonch, to approve Resolution No. 2004-9-11.
Discussion: Commissioner Smith congratulated the union and the management teams on reaching a settlement agreement. She stated that hopefully this contract will unite the workforce and allow the IBEW to continue its service to the community long into the future.
General Manager Sanford Novick echoed Commissioner Smith’s comments and commended the teams for their diligence and for trying to understand each other’s positions after many hours of dealing with difficult issues.
Human Resources Director Mary Dwyer reported that upon the Board’s approval of the agreement, a copy would be faxed to IBEW International. Once the agreement is executed, copies will be printed for distribution to the membership.
Action: Carried unanimously.
Resolution 2004-9-12
HEALTH CARE AND OTHER
COMPENSATION ISSUES FOR NON-BARGAINING UNIT EMPLOYEES
WHEREAS, the Board of Commissioners has had an opportunity to review the health care cost coverage changes adopted last May 2004 for the Non-Bargaining unit employees of the Board of Water and Light; and
WHEREAS, the Commissioners have also considered the health care cost coverage changes and a substitute for the Corporate Incentive Plan (CIP) agreed to in the approved contract between the Board of Water and Light and the International Brotherhood of Electrical Workers Local Union 352; and
WHEREAS, in order to establish some parity between the Non-Bargaining employees and the Bargaining Unit employees; be it
RESOLVED, That the attached health care cost coverage changes and substitute for the Corporate Incentive Plan (CIP) (Attachment #2) be adopted for Non-Bargaining Unit employees with the specified implementation dates.
Discussion: General Manager Novick reported that at the May 26, 2004 meeting, the Board approved changes to health care cost sharing for Non-Bargaining employees. Subsequent to that change, the Board approved changes to the Bargaining employees’ health care cost sharing and a substitution for the Corporate Incentive Plan with a contribution and dollar match to employees’ 457 deferred compensation accounts. The new contract agreement with IBEW calls for premium sharing for union members, but at a lower rate than the 10% premium sharing currently being paid by Non-Bargaining employees since July 1, 2004.
Commissioner Rios inquired if there is a legal requirement that all employees pay the same in health care cost sharing. He expressed concern with establishing precedence in terms of how wages and other benefits for union and non-union employees are set. He also asked how the 10% cost-sharing amount was initially determined for Non-Bargaining employees, which took effect in July of this year.
General Manager Novick responded that the union is not negotiating for the Non-Bargaining employees. He noted that it is not management’s intent to establish any kind of system for setting wages and other benefits for Bargaining and Non-Bargaining employees. The 10% cost sharing amount was arbitrarily selected because it was considered to be a reasonable beginning step to encourage employees to help manage health care costs. There is no legal requirement that all employees pay the same percentage in terms of health insurance premium sharing. This amount was imposed on Non-Bargaining employees without a wage adjustment to offset the increase. In order to ensure equitable treatment of all BWL employees, staff recommends restoring balance in health care cost sharing between Bargaining and Non-Bargaining employees. The 10% premium cost sharing was management’s starting point in negotiations with the union. Mr. Novick also proposed that the Board consider extending another benefit in the union contract to Non-Bargaining employees. Under the new contract, the BWL Corporate Incentive Plan is substituted with a $1,000 per year contribution to employee deferred compensation accounts effective January 1, 2005 and will match employee contributions on a $.75 to $2.00 basis up to a maximum of $500. Mr. Novick pointed out that the BWL cannot provide a corporate incentive plan for one group of employees and not the other.
Lengthy discussion was held with respect to concerns about rising health care costs and insurance coverage. This year, the BWL’s health care costs increased 13% and have more than doubled over the past five years. Mr. Novick reported that a new GASB pronouncement requires the BWL in fiscal year 2007, or sooner, to state on the balance sheets the unfunded liability for future health insurance costs for active and retired employees. He noted that currently the BWL has a liability of approximately $180 million for health care costs. There was consensus among the Commissioners that the Board will need to revisit the issue of health care concerns in the future.
Motion by Commissioner Duncan, seconded by Commissioner Wonch, to approve Resolution No. 2004-9-12.
Action: Carried unanimously.
[Commissioner Joseph arrived at 5:50 p.m.]
There were no comments.
COMMISSIONERS’ COMMENTS
There were no comments.
ABSENCES
On motion by Commissioner Wonch and seconded by Commissioner Callen, that the absence of Commissioners Calkins and Haggart be excused.
Carried unanimously.
PUBLIC COMMENTS
Joseph Davis announced that as the result of the death of Curtis Gates--former IBEW Local 352 Business Manager--and per directive of the IBEW Local 352 constitution, the Executive Board held a special meeting and elected Mr. Davis the Business Manager to fill the remainder of the term. Mr. Davis also reported that health care cost sharing was the topic of long debate by the union negotiating team. He said that the union was concerned with rolling the proposed 10% premium sharing back to 5%; however, concessions were made in wages as an offset. He assured the Board that their concerns with health care premiums would be conveyed to the membership. Mr. Davis thanked the Board for their support.
ADJOURNMENT
On motion by Commissioner Wonch, seconded by Commissioner Joseph, the meeting adjourned at 6:00 p.m.
/s/ Mary E. Sova, Secretary